Lesetja Kganyago: Overview of the South African economy

Address by Mr Lesetja Kganyago, Governor of the South African Reserve Bank, at the 101st annual ordinary general meeting of the SARB shareholders, Pretoria, 30 July 2021.

The views expressed in this speech are those of the speaker and not the view of the BIS.

We convene our 101st annual Ordinary General Meeting (AGM) more than 18 months since the first COVID-19 case was reported in South Africa, and as the third wave of virus infections has peaked. Restrictive measures have been necessary to protect human lives, with negative effects across our economy, leaving deep scars on businesses and on the economic livelihoods of many South Africans.

While the magnitude of the economic shock has been difficult to estimate, the South African Reserve Bank (SARB) responded quickly and aggressively with a broad array of actions to limit the economic damage, in line with its constitutional and legislative mandates. The policy responses included the use of monetary policy, market operations to support the functioning of financial markets, regulatory tools, as well as collaborations with other entities to provide relief to the economy and support lending to households and firms. In addition, the SARB has been contributing in global forums aimed at fostering greater international cooperation to strengthen the global financial safety net.